Loyal Equipments FY26 Net Profit Drops to ₹673.37 Lakh Despite Revenue Growth
Loyal Equipments reported audited standalone financial results for FY26, with net profit declining to ₹673.37 lakh from ₹1066.20 lakh in FY25, despite revenue from operations rising to ₹7897.84 lakh from ₹7530.01 lakh. Total expenses surged to ₹7124.03 lakh from ₹6212.80 lakh, driven by higher raw material and other costs. Total assets grew to ₹9284.44 lakh, while cash and cash equivalents fell sharply to ₹31.57 lakh from ₹1259.69 lakh.
*this image is generated using AI for illustrative purposes only.
Loyal Equipments has announced its audited standalone financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the results during a meeting held on May 13, 2026, at the company's registered office in Dahegam, Gujarat. The statutory auditors, M/s. A Y & Company (FRN: 020829C), issued an audit report with an unmodified opinion on the financial results, which were also reviewed and recommended by the Audit Committee prior to board approval.
Financial Performance Overview
For the full year ended March 31, 2026, Loyal Equipments reported revenue from operations of ₹7897.84 lakh, up from ₹7530.01 lakh in the previous year. Total income for the year rose to ₹7997.31 lakh from ₹7571.58 lakh. However, total expenses increased sharply to ₹7124.03 lakh from ₹6212.80 lakh, driven primarily by higher raw material costs and other expenses. As a result, net profit for the year declined to ₹673.37 lakh from ₹1066.20 lakh in the prior year. Basic and diluted earnings per share for continuing operations stood at ₹6.24, compared to ₹10.21 in the previous year.
The table below summarizes the key financial figures for the year and quarter ended March 31, 2026:
| Particulars: | Year Ended 31.03.2026 (₹ in Lakhs) | Year Ended 31.03.2025 (₹ in Lakhs) | Quarter Ended 31.03.2026 (₹ in Lakhs) | Quarter Ended 31.03.2025 (₹ in Lakhs) |
|---|---|---|---|---|
| Revenue from Operations | 7897.84 | 7530.01 | 3048.55 | 2893.83 |
| Other Income | 99.47 | 41.57 | 40.52 | 9.61 |
| Total Income | 7997.31 | 7571.58 | 3089.07 | 2903.44 |
| Cost of Raw Material Consumed | 4807.32 | 3708.56 | 1797.82 | 960.16 |
| Employee Benefit Expenses | 857.37 | 702.98 | 229.68 | 194.21 |
| Finance Costs | 178.91 | 85.95 | 101.25 | 31.64 |
| Depreciation & Amortization | 273.97 | 236.34 | 74.23 | 63.74 |
| Other Expenses | 1802.19 | 1077.90 | 715.98 | 347.86 |
| Total Expenses | 7124.03 | 6212.80 | 2696.08 | 2354.04 |
| Profit Before Tax | 873.28 | 1358.78 | 392.99 | 549.40 |
| Net Profit | 673.37 | 1066.20 | 287.00 | 400.62 |
| Total Comprehensive Income | 668.21 | 1066.00 | 281.84 | 400.42 |
| Basic EPS (₹) | 6.24 | 10.21 | 2.66 | 3.71 |
| Diluted EPS (₹) | 6.24 | 10.21 | 2.66 | 3.71 |
Quarterly Performance
In the quarter ended March 31, 2026, revenue from operations rose to ₹3048.55 lakh from ₹2893.83 lakh in the same quarter of the previous year. Total income for the quarter stood at ₹3089.07 lakh, compared to ₹2903.44 lakh. However, total expenses for the quarter increased to ₹2696.08 lakh from ₹2354.04 lakh, contributing to a decline in quarterly net profit to ₹287.00 lakh from ₹400.62 lakh. Profit before tax for the quarter was ₹392.99 lakh, down from ₹549.40 lakh in the corresponding quarter of the prior year.
Assets, Liabilities, and Cash Flow
As of March 31, 2026, total assets stood at ₹9284.44 lakh, up from ₹7545.37 lakh as of March 31, 2025. The increase was supported by growth in inventories to ₹2840.14 lakh from ₹1704.17 lakh, and a significant rise in capital work-in-progress to ₹1589.97 lakh from ₹272.01 lakh. Total equity increased to ₹5654.95 lakh from ₹5087.49 lakh, with equity share capital remaining unchanged at ₹1079.00 lakh. Short-term borrowings rose to ₹1479.95 lakh from ₹832.80 lakh, while trade payables increased to ₹987.53 lakh from ₹405.97 lakh.
The table below presents the key balance sheet figures:
| Particulars: | As at 31.03.2026 (₹ in Lakhs) | As at 31.03.2025 (₹ in Lakhs) |
|---|---|---|
| Total Assets | 9284.44 | 7545.37 |
| Inventories | 2840.14 | 1704.17 |
| Trade Receivables (Current) | 1992.61 | 2230.40 |
| Cash & Cash Equivalents | 31.57 | 1259.69 |
| Capital Work-in-Progress | 1589.97 | 272.01 |
| Total Equity | 5654.95 | 5087.49 |
| Short-Term Borrowings | 1479.95 | 832.80 |
| Trade Payables | 987.53 | 405.97 |
| Long-Term Borrowings | 292.30 | 125.85 |
On the cash flow front, net cash from operating activities was ₹145.87 lakh, compared to ₹312.29 lakh in the prior year. Net cash used in investing activities amounted to ₹1900.77 lakh, largely reflecting fixed asset purchases of ₹1923.00 lakh. Cash and cash equivalents at the end of the period declined significantly to ₹31.57 lakh from ₹1259.69 lakh at the beginning of the period. The company also paid a dividend of ₹107.90 lakh during the year. Loyal Equipments operates in a single segment — manufacturing of industrial equipment — and has no subsidiary, associate, or joint venture companies as of March 31, 2026.
Historical Stock Returns for Loyal Equipments
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -8.03% | -11.82% | -4.10% | -21.44% | -34.62% | +467.89% |
Will Loyal Equipments be able to manage its rising raw material costs and restore profit margins to FY2025 levels in the coming fiscal year?
How will the significant capital work-in-progress investment of ₹1589.97 lakh translate into revenue growth and capacity expansion in FY2027?
Given the sharp decline in cash reserves from ₹1259.69 lakh to ₹31.57 lakh, how will Loyal Equipments fund its working capital requirements and service its growing debt obligations?
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